Whether they like it or not a lot of people are going to soon own some $BTC and it could also have a pretty good effect on the price of bitcoin rolling forward. That's because of one major stock called MicroStrategy which now has a large enough market cap to be included into the S&P500.
It's actully pretty mind blowing when you step back and look at the recent moves by this company. I'm about to show you a possible flywheel scenario forming with this company that's going to knock your socks off and like many people around here on hive aka Splinterlands we fully understand how a flywheel works and the potential of it.
Michael Saylor
You may not know the name but you for sure know the face. As it's now plastered all over the place. Once again CEO of the company he invested heavily into bitcoin and still does to this day. There was even a time when he had to step down as the CEO of his own company only to now bring him back in now that bitcoin is skyrocketing. Funny how that works right, money talks my friends.
As of Feb 26th, 2024 Micro strategy now owns 193,000 Bitcoin and has a large enough market cap to be included into the S&P500 which is going to happen. This is where the flywheel starts to kick into effect and why it's going to be something interesting to watch and see what happens.
What that means is when Micro Strategy gets added into the S&P500 those ETFs for S&P such as the Vangaurd S&P 500 ETF among many many other index style ETFS will now have exposure to the company and thus exposure to bitcoin. Many people wont even realize this and there's a lot of money that's injected and still heavily pushed to investors into this index funds. You also have your normal investors into Micro Strategy directly now contributing to this.
This is all done by the CEO borrows against his stock to buy bitcoin. This is then held in the treasury of MicroStrategy. As bitcoin goes up in price the stock price of Micro Strategy also goes up. It's actully wild and I believe as more companies figure this out would could see a mad rush for companies to start to gobble up some bitcoin to add to their balance sheets.
Bitcoin Is Getting Harder To Come By
Bitcoin is getting harder and harder to come by these days which is another factor driving up the prices right now. In fact so much so only 900 new bitcoin are currently being printed into circulation of which over 10,000 bitcoin has been being purchased on the norm from these spot bitcoin ETFs.
Now toss in the halving that's happening very soon...
and that numbers going to go from 900 a day down to 450. A drastic cut while the demand for buying them only seems to be increasing. Thus we could see it hit all new highs very soon and then just continue on this time around blowing past my original thoughts of $114,000 per bitcoin as the peak for the next bull run.
There's even more rumors now of countries adding bitcoin to their portfolio. If we start seeing that I can pretty much kiss by $114,000 price target out the window and we very well might see that 1 million dollar bitcoin value so many have been cheering for.
What say you? Do you feel this could be a trigger that just continues to grow and explode Bitcoin for the foreseeable future? or will it have limited effects?